There will be a decrease in the US trade deficit if there is an increase in a. an appreicating currency b. a decrease in net capital outflow c. US exports to the eurozone d. US demand for chinese goods

There will be a decrease in the US trade deficit if there is an increase in a. an appreicating currency b. a decrease in net capital outflow c. US exports to the eurozone d. US demand for chinese goods

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 37CTQ: Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors,...

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Question

There will be a decrease in the US trade deficit if there is an increase in

a. an appreicating currency

b. a decrease in net capital outflow

c. US exports to the eurozone

d. US demand for chinese goods

Definition Definition Situation in which a country spends more on imports than it makes through exports. When a trade deficit exists, net exports will be negative. Trade Deficit = (Imports) - (Exports)

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